QuickLogic Announces Fiscal 2013 Second Quarter Results

New Product Revenue Increases by More Than 200% Sequentially

SUNNYVALE, CA -- (Marketwired) -- 07/31/13 -- QuickLogic Corporation (NASDAQ: QUIK), the innovator of ultra-low-power Customer Specific Standard Products (CSSPs), today announced the financial results for its fiscal second quarter ended June 30, 2013.

Total revenue for the second quarter of 2013 was $5.1 million, representing an increase of 70% sequentially and 26% from the second quarter of 2012. New product revenue for the second quarter of 2013 was $3.1 million, up 229% sequentially and up 80% compared to the second quarter of 2012. New product revenue accounted for 60% of the total revenue in the second quarter. Mature product revenue was $2.0 million in the second quarter of 2013, down 2% sequentially and down 14% from the second quarter of 2012.

Under generally accepted accounting principles (GAAP), the net loss for the second quarter of 2013 was $3.2 million, or $0.07 per share, compared with a net loss of $3.6 million, or $0.08 per share, in the first quarter of 2013 and a net loss of $3.2 million, or $0.08 per share, in the second quarter of 2012. Non-GAAP net loss for the second quarter of 2013 was $2.7 million, or $0.05 per share, compared with a non-GAAP net loss of $3.1 million, or $0.07 per share, in the first quarter of 2013 and a non-GAAP net loss of $2.8 million, or $0.07 per share, in the second quarter of 2012.

Conference Call

QuickLogic will hold a conference call at 2:30 p.m. Pacific Daylight Time today, July 31, 2013, to discuss its current financial results. The conference call is being webcast and can be accessed via QuickLogic's website at www.quicklogic.com. To join the live conference, you may dial (877) 377-7094 by 2:20 p.m. Pacific Daylight Time. A recording of the call will be available starting one hour after completion of the call. To access the recording, please call (404) 537-3406 and reference the passcode: 17317665. The call recording will be archived until Wednesday, August 7, 2013 and the webcast will be available for 12 months.

About QuickLogic

QuickLogic Corporation (NASDAQ: QUIK) is the inventor and pioneer of innovative, customizable semiconductor solutions for mobile and portable electronics original equipment manufacturers (OEMs) and original design manufacturers (ODMs). These silicon plus software solutions are called Customer Specific Standard Products (CSSPs). CSSPs enable our customers to bring their products to market more quickly and remain in the market longer, with the low power, cost and size demanded by the mobile and portable electronics market. For more information about QuickLogic and CSSPs, visit www.quicklogic.com. Code: QUIK-G

Non-GAAP Financial Measures

QuickLogic reports financial information in accordance with GAAP, but believes that non-GAAP financial measures are helpful in evaluating its operating results and comparing its performance to comparable companies. Accordingly, the Company excludes charges related to stock-based compensation, restructuring, the gain (loss) from sale of the Company's investment in TowerJazz Semiconductor Ltd., the effect of the write-off of long-lived assets and the tax effect on other comprehensive income in calculating non-GAAP (i) income (loss) from operations, (ii) net income (loss), (iii) net income (loss) per share, and (iv) gross margin percentage. The Company provides this non-GAAP information to enable investors to evaluate its operating results in a manner similar to how the Company analyzes its operating results and to provide consistency and comparability with similar companies in the Company's industry.

Management uses the non-GAAP measures, which exclude gains, losses and other charges that are considered by management to be outside of the Company's core operating results, internally to evaluate its operating performance against results in prior periods and its operating plans and forecasts. In addition, the non-GAAP measures are used to plan for the Company's future periods, and serve as a basis for the allocation of Company resources, management of operations and the measurement of profit-dependent cash and equity compensation paid to employees and executive officers.

Investors should note, however, that the non-GAAP financial measures used by QuickLogic may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. QuickLogic does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures with their most directly comparable GAAP financial measures.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements. Actual results could differ materially from the results described in these forward-looking statements. Factors that could cause actual results to differ materially include: delays in the market acceptance of the Company's new products; the ability to convert design opportunities into customer revenue; our ability to replace revenue from end-of-life products; the level and timing of customer design activity; the market acceptance of our customers' products; the risk that new orders may not result in future revenue; our ability to introduce and produce new products based on advanced wafer technology on a timely basis; our ability to adequately market the low power, competitive pricing and short time-to-market of our new products; intense competition, including the introduction of new products by competitors; our ability to hire and retain qualified personnel; changes in product demand or supply; capacity constraints; and general economic conditions. These factors and others are described in more detail in the Company's public reports filed with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior press releases.

ArcticLink, pASIC, PolarPro and QuickLogic are registered trademarks and Eclipse and the QuickLogic logo are trademarks of QuickLogic Corporation. All other brands or trademarks are the property of their respective holders and should be treated as such.



                           QUICKLOGIC CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                 (Unaudited)

                             Three Months Ended          Six Months Ended
                      -------------------------------  --------------------
                       June 30,   July 1,   March 31,   June 30,   July 1,
                         2013       2012       2013       2013       2012
                      ---------  ---------  ---------  ---------  ---------

Revenue               $   5,126  $   4,071  $   3,017  $   8,143  $   8,201
Cost of revenue,
 excluding inventory
 write-down               3,281      1,927      1,643      4,924      3,969
Inventory write-down        (94)        99        343        249        428
                      ---------  ---------  ---------  ---------  ---------
Gross profit              1,939      2,045      1,031      2,970      3,804
Operating expenses:
  Research and
   development            1,842      2,452      2,008      3,850      5,254
  Selling, general
   and administrative     2,911      2,749      2,530      5,441      5,446
  Restructuring cost        206          -          7        213          -
                      ---------  ---------  ---------  ---------  ---------
Income (loss) from
 operations              (3,020)    (3,156)    (3,514)    (6,534)    (6,896)
Gain on sale of
 TowerJazz
 Semiconductor Ltd.
 shares                     181          -          -        181          -
Interest expense            (20)       (24)        (9)       (29)       (37)
Interest income and
 other (expense), net       (52)       (50)        (4)       (56)       (63)
                      ---------  ---------  ---------  ---------  ---------
Income (loss) before
 income taxes            (2,911)    (3,230)    (3,527)    (6,438)    (6,996)
Provision for
 (benefit from)
 income taxes               330          6         57        387        (39)
                      ---------  ---------  ---------  ---------  ---------
Net income (loss)     $  (3,241) $  (3,236) $  (3,584) $  (6,825) $  (6,957)
                      =========  =========  =========  =========  =========

Net income (loss) per
 share:
  Basic               $   (0.07) $   (0.08) $   (0.08) $   (0.15) $   (0.18)
                      =========  =========  =========  =========  =========
  Diluted             $   (0.07) $   (0.08) $   (0.08) $   (0.15) $   (0.18)
                      =========  =========  =========  =========  =========

Weighted average
 shares:
  Basic                  44,641     40,154     44,517     44,579     39,401
                      =========  =========  =========  =========  =========
  Diluted                44,641     40,154     44,517     44,579     39,401
                      =========  =========  =========  =========  =========




                           QUICKLOGIC CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                 (Unaudited)

                                     June 30, 2013     December 30, 2012(1)
                                 --------------------  --------------------
             ASSETS

Current assets:
  Cash and cash equivalents      $             17,761  $             22,578
  Short-term investment in
   TowerJazz Semiconductor Ltd.                     -                   345
  Accounts receivable, net                      2,093                 1,242
  Inventories                                   3,603                 3,028
  Other current assets                            921                   986
                                 --------------------  --------------------
    Total current assets                       24,378                28,179
                                 --------------------  --------------------
Property and equipment, net                     2,110                 2,659
Other assets                                      270                   186
                                 --------------------  --------------------
TOTAL ASSETS                     $             26,758  $             31,024
                                 ====================  ====================

  LIABILITIES AND STOCKHOLDERS'
              EQUITY

Current liabilities:
  Trade payables                 $              2,681  $              1,965
  Accrued liabilities                           2,052                 1,214
  Current portion of capital
   lease obligations                              224                   160
                                 --------------------  --------------------
    Total current liabilities                   4,957                 3,339
                                 --------------------  --------------------

Long-term liabilities:
  Capital lease obligations,
   less current portion                            81                   266
  Other long-term liabilities                     167                   141
                                 --------------------  --------------------
    Total liabilities                           5,205                 3,746
                                 --------------------  --------------------

Stockholders' equity:
  Common stock, at par value                       45                    45
  Additional paid-in capital                  205,886               204,797
  Accumulated other
   comprehensive income                             -                   (11)
  Accumulated deficit                        (184,378)             (177,553)
                                 --------------------  --------------------
    Total stockholders' equity                 21,553                27,278
                                 --------------------  --------------------

TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY            $             26,758  $             31,024
                                 ====================  ====================


(1) Derived from the December 30, 2012 audited balance sheet included in the
    2012 Annual Report on Form 10-K of QuickLogic Corporation.


                           QUICKLOGIC CORPORATION
    SUPPLEMENTAL RECONCILIATIONS OF GAAP AND NON-GAAP FINANCIAL MEASURES
                  (In thousands, except per share amounts)
                                 (Unaudited)

                             Three Months Ended          Six Months Ended
                      -------------------------------  --------------------
                       June 30,   July 1,   March 31,   June 30,   July 1,
                         2013       2012       2013       2013       2012
                      ---------  ---------  ---------  ---------  ---------
GAAP income (loss)
 from operations      $  (3,020) $  (3,156) $  (3,514) $  (6,534) $  (6,896)
  Adjustment for
   stock-based
   compensation
   within:
    Cost of revenue          22         39         30         52         71
    Research and
     development             46         99        166        212        192
    Selling, general
     and
     administrative         217        296        256        473        555
  Adjustment for
   restructuring
   costs                    206          -          7        213          -
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP income
 (loss) from
 operations           $  (2,529) $  (2,722) $  (3,055) $  (5,584) $  (6,078)
                      =========  =========  =========  =========  =========

GAAP net income
 (loss)               $  (3,241) $  (3,236) $  (3,584) $  (6,825) $  (6,957)
  Adjustment for
   stock-based
   compensation
   within:
    Cost of revenue          22         39         30         52         71
    Research and
     development             46         99        166        212        192
    Selling, general
     and
     administrative         217        296        256        473        555
  Adjustment for
   restructuring
   costs                    206          -          7        213          -
  Adjustment for gain
   on sale of
   TowerJazz
   Semiconductor Ltd.
   shares                  (181)         -          -       (181)         -
  Adjustment for tax
   effect on other
   comprehensive
   income                   273          -          -        273        (63)
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP net income
 (loss)               $  (2,658) $  (2,802) $  (3,125) $  (5,783) $  (6,202)
                      =========  =========  =========  =========  =========

GAAP net income
 (loss) per share     $   (0.07) $   (0.08) $   (0.08) $   (0.15) $   (0.18)
  Adjustment for
   stock-based
   compensation            0.01       0.01       0.01       0.02       0.02
  Adjustment for
   restructuring
   costs                   0.01          -          *       0.01          -
  Adjustment for gain
   on sale of
   TowerJazz
   Semiconductor Ltd.
   shares                 (0.01)         -          -      (0.01)         -
  Adjustment for tax
   effect on other
   comprehensive
   income                  0.01          -          -       0.01          *
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP net income
 (loss) per share     $   (0.05) $   (0.07) $   (0.07) $   (0.12) $   (0.16)
                      =========  =========  =========  =========  =========

GAAP gross margin
 percentage                37.8%      50.2%      34.2%      36.5%      46.4%
  Adjustment for
   stock-based
   compensation             0.4        1.0        1.0        0.6        0.9
                      ---------  ---------  ---------  ---------  ---------
Non-GAAP gross margin
 percentage                38.2%      51.2%      35.2%      37.1%      47.3%
                      =========  =========  =========  =========  =========


* Figures were not considered in the reconciliation due to the insignificant
amount.


                           QUICKLOGIC CORPORATION
                              SUPPLEMENTAL DATA
                                 (Unaudited)

                                 Percentage of Revenue    Change in Revenue
                              -------------------------- -------------------
                                                          Q2 2012   Q1 2013
                                                             to        to
                               Q2 2013  Q2 2012  Q1 2013  Q2 2013   Q2 2013
                              -------- -------- -------- --------- ---------
COMPOSITION OF REVENUE
Revenue by product (1):
  New products                   60%      42%      31%      80%       229%
  Mature products                40%      58%      69%     (14)%      (2)%

Revenue by geography:
  Korea                          46%      0%       1%        -         -
  United States                  20%      29%      31%     (13)%       9%
  Japan                          10%      23%      20%     (45)%     (15)%
  China                          7%       21%      4%      (56)%      183%
  Europe                         7%       15%      15%     (43)%     (25)%
  Malaysia                       7%       8%       23%       1%      (49)%
  Rest of North America          2%       1%       6%       144%     (28)%
  Rest of Asia Pacific           1%       3%       0%      (63)%       -


(1) New products represent products introduced since 2005, and include
    ArcticLink®, ArcticLink II, ArcticLink III, Eclipse™ II, PolarPro®,
    PolarPro II, and QuickPCI II. Mature products include Eclipse,
    EclipsePlus, pASIC® 1, pASIC 2, pASIC 3, QuickFC, QuickMIPS, QuickPCI,
    QuickRAM, and V3, as well as royalty revenue, programming hardware and
    software.

Contacts:

Ralph S. Marimon
Vice President of Finance
Chief Financial Officer
(408) 990-4000
Email Contact

Andrea Vedanayagam
(408) 656-4494
Email Contact

Source: QuickLogic